Jorge Rave
Senior Regional Manager Global Business Development and Representative in Mexico City
Export Development Canada (EDC)
View from the Top

Growing Canadian Exports, Investments

Mon, 10/22/2018 - 13:09

Q: What services does EDC provide and how do you help the Mexican mining industry?
A: EDC is Canada’s export credit agency and has a mandate to support and grow Canadian exports and investment overseas. We provide financial services and strategic introductions to Canadian supply investment and we help foreign corporations. Mexican mining companies are an example of this as we introduce them to Canadian companies that can help them increase efficiency and innovation. We have many existing and prospective clients in the Mexican mining sector and since 2016, we have seen a very clear focus from Mexican companies on implementing cutting-edge technology, an aspect in which Canadian companies can easily assist them. Canada is a global leader in the provision of mining services and in the development of innovative technologies for the mining industry. We have around 3,000 Canadian mining companies that provide technical, legal, financial, accounting, environmental and other expertise to the industry; many of those companies have a global presence and Mexico is no exception. The fact that 70 percent of foreign investment in the Mexican mining sector is of Canadian origin shows the complementarity of the two countries.
Q: How are your EMarket services leveraging the mining marketplace?
A: EDC has played a significant role in helping Canadian companies go, grow and succeed internationally by offering insurance and financing. At the same time, we are seeing that leveraging our digital strategy with appropriate content can help us reach more exporters and investors with solutions and services that can help them along their export journey. To this end, EMarket leverages our unique and seasoned expertise in international trade, our knowledge of international supply chains and our understanding of Canadian capabilities.
We recognized that many of the companies that were coming to us for traditional services were only coming when they were export ready. Although it is important for us to work with those companies that have international experience and have already exported to other countries, there are many companies that may be missing out on international business opportunities because they lack the knowledge of international markets. Our EMarket platform allows us to establish quicker and more efficient communication with many of those companies. We see an opportunity to fill the information gap for these exporters. This knowledge is not only intended for small inexperienced businesses but, in the case of the Mexican mining sector, for companies like Peñoles and Minera Frisco that have also benefited from our financial support, knowledge and expertise in recent years.
Q: What are the factors behind EDC’s ranking of Mexico as Low to Medium risk?
A: EDC is optimistic but prudent when it comes to the mining sector in Mexico and we are waiting to see how the new government will address some of the challenges that are part of doing business in mining, such as social conflict. Whenever EDC considers providing financial support to any company, we look at three key pillars. First is the strength of what we call the Canadian mandate. We want to ensure that foreign companies have the ability and interest to work with Canadian companies and to leverage our knowledge of international supply chains and our understanding of Canadian capabilities. Second, EDC is a self-sustained financial organization. Our loans are neither grants nor subsidies; they are commercial loans. Finally, since CSR is directly linked to sustainable financial performance over the long term, EDC focuses its efforts on making sure prospective clients are leaders in sustainable and responsible businesses. As part of country risk, it is key for us to guarantee that those companies that we do business with are the best in dealing with any potential socio-environmental issues. Going forward, it will be important to see how social conflict is addressed, not only by private companies but by local and central governments that also have a role to play in the development of the sector. These are some of the criteria that we look at when assessing country risk.